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Productivity and Profitability Analysis in Coastal Kenya

Productivity and Profitability Analysis

Huge yield gaps are persistent for all the crops grown by small scale farmers in the coastal region. Although horticultural production can only be done under irrigation supplementation given the agro ecological condition of the Kenyan coastal region, use of good agricultural practices and increased use of yield enhancing inputs would earn farmers huge profits especially for tomatoes, sweet pepper, ABE chilli, cassava, kales and water melon.

Crop

Productivity (Kg/Acre)

Current

Potential

Yield gap

Maize

360

2,250

1,890

Cow Peas

53

720

667

Cassava

400

25,000

21,000

Green Grams

45

540

495

Chilli

639

5,000

4,361

Sorghum

117

900

783

Cashew Nuts

60

2,000

1,940

Millet

140

450

310

Tomato (under semi-irrigation)

1,400

16,000

14,600

Coconuts

200

3,000

2,800

Kales (under semi-irrigation)

2,500

6,000

3,500

Water Mellon (under semi-irrigation )

1,500

4,250

2,750

Banana (requires a lot of water)

700

16,000

15,300

Sweet Potato

200

10,000

9,800

Pineapple (irrigation supplementation)

1,600

15,000

13,400

Pawpaw (planted on borders)

5,000

15,000

10,000

Sweet pepper (under semi-irrigation)

1,700

5,000

3,300

Crop production is driven by various cost factors and whereas high priced crops are always attractive to farmers, the cost of production and return on investment coupled with other external factors such as weather conditions play a big role in enterprise prioritization. The net revenue, input cost and labour cost are key in determining viable enterprises for smallholder farmers rather than the absolute prices offered for the commodity.

Table: A summary of gross margin analysis per acre for various value chains grown in Kilifi County

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